BAM NEWS

Politics: Joe the Plumber and Other Facts About the Election… You all know what a political hack I am. There is so much information flying around it’s hard to keep track of it all. It is especially hard if you are undecided and watch the two Presidential candidates avoid answering critical questions about the economy. It is disturbing.  Well folks, it’s almost time to make some decisions.
I have some resources for you to check out to aid your decision. Check out http://www.factcheck.org/about/ to see if what you are hearing is true, not true or partially true.  Of course, if you watched the debate this week or read the papers you didn’t miss the references to surly “Joe the Plumber” who asked THE question about the differences in tax plans between the two candidates. Check out Joe’s story at http://www.chron.com/disp/story.mpl/nation/6061246.html  
Regulatory: Are You Prepared to Withhold Taxes for Your Independent Contractor and Keep a Certificate About Their Status on File? BAM haggled with the Department of Labor & Industry on the rules and requirements for Independent Contractors and now the rules have become law. Independent Contractors who are SOLE PROPRIETORS must have a certificate before January 1, 2009. If you hire an independent contractor without a certificate after January 1, 2009 and you don’t have their certificate on file, you will be fined $5,000.
Independent Contractors who are sole proprietors can apply for the certificate now by going online at: http://www.doli.state.mn.us/ic and click on link Apply For The ICEC located on the left side of the webpage. The second change you must be prepared for is the 2% withholding requirement.  Beginning on January 1, 2009 you must withhold 2% of an independent contractor’s income and pay that to the MN Department of Revenue.  Here again, you withhold ONLY if the Independent Contractor is a sole proprietor and the withholding exceeds $600. BAM’s GR Director Lisa Frenette wrote a white paper on the issue for your use. 
Please check out the white paper at: http://bamn.org/Documents/ICWhitePaper.pdf